Drug Licence & GST: Documents Every Pharma Distributor Needs

Before you can buy stock from any pharma company you need a wholesale drug licence and GST registration. Here is the complete document checklist and the usual application steps.

No genuine pharma company will bill you without a valid wholesale drug licence and GST number. Get these in place before you finalise a franchise — it avoids weeks of delay later.

1. Wholesale drug licence

Wholesale licences are issued by the State Drug Control department under the Drugs and Cosmetics Rules, 1945. Most distributors hold both:

• Form 20B — for drugs other than those in Schedules C, C(1) and X
• Form 21B — for drugs in Schedules C and C(1)

Typical requirements

• Premises — a dedicated space of at least 10 sq. m (more if combined with a retail counter), owned or rented, with a clean and dry storage area
• Storage — refrigerator for products that need 2–8 °C storage
• Competent person — a registered pharmacist, or a graduate with at least one year of experience in dealing with drugs (other qualifications may be accepted as per your state’s rules)

Documents usually asked for

• Application form and fee challan
• Proof of ownership or rent agreement of the premises
• Site plan / layout of the premises
• ID and address proof of the proprietor, partners or directors
• Qualification and experience certificates of the competent person, with an appointment letter
• Partnership deed or company incorporation documents, if applicable
• Affidavits as required by the state

After you apply, a Drug Inspector usually visits the premises before the licence is granted. Many states now accept applications online.

2. GST registration

Registration is compulsory once turnover crosses the threshold, and for any inter-state purchase or sale — which covers most franchise partners buying from companies in Baddi, Sikkim, Ahmedabad or Haridwar. You will need:

• PAN of the business or proprietor
• Aadhaar of the proprietor / partners
• Proof of business address
• Bank account details and a cancelled cheque
• Photographs of the proprietor / partners

3. Nice-to-have

• FSSAI licence if you plan to distribute nutraceuticals or food supplements
• Udyam (MSME) registration for easier access to credit

Rules differ slightly between states. Confirm the current requirements with your State Drug Control office or a consultant before applying.

Once your licences are ready, find a partner from our list of verified pharma companies.